Shark Tank Investor Kevin O’Leary Says ‘Nightmarish’ Crypto Fix Is Good For Industry


Shark Tank star Kevin O’Leary is looking at the crypto landscape changed after billions of dollars were liquidated after two large digital assets collapsed earlier this month.

In a new interview with Stansberry Research, O’Leary said: say The disappearance of the TerraUSD (UST) algorithmic stablecoin and its affiliate Terra (LUNA) is a painful part of the growing industry.

“I think this is actually the maturation of the cryptocurrency market. Crypto projects have two main baskets. One is a very speculative token, and I can say that UST and LUNA are definitely a good fit since their prices have been rebalanced dramatically.

[It’s] Very unlikely in the context of stablecoins. [will] Since people knew that stablecoins should be stable, they cannot go back to their previous price. That means asset values ​​have to be backed up.”

Next, O’Leary observes that the US Dollar Coin (USDC), owned by financial services firm Circle, did not falter like other so-called stablecoins during the recent market crash.

“You can see that the USDC did not modify it that way. In fact, it was actually crushed during a period of mass modification of other algorithms or other quantitative or speculative stablecoins. Circle, the company that issues USDC, was able to raise $200 million from Fidelity and $200 million from Blackrock.

This is unprecedented in [terms of] stake in the company.

So, this is a sign that institutional investors prefer other types of stablecoins that look like retail products.”

Popular investors also point out that other speculative niches in the blockchain world have also seen price drops such as Non-Fungible Tokens (NFTs).

“You have all the guesswork and the NFT has corrected it. The Las Vegas side of the cryptocurrency has made a nightmare correction in that it helps you separate chaff from wheat or milk from cream, regardless of analogy if you wish, regardless of analogy. I think it’s very good.

Traditional projects have remained relatively stable. Of course, there were corrections… It is the volatility inherent in cryptocurrencies until there is a policy.”

O’Leary concludes by reaffirming his beliefs in crypto assets in the long run. He says it remains to be seen which projects will come out on top and which will disappear entirely.

“I am optimistic about cryptocurrencies from a productivity standpoint. I always said this. Bitcoin is software, not a coin. Ethereum software. Solana’s software. Helium’s software. Polygon’s software…

Which of these projects will be successful, but the whole premise is that you want these projects for financial services. I still believe that cryptocurrencies will become the 12th sector of the economy in 10 years. However, all existing tokens will not exist.

It was so speculative it was fun, [but] They had no real intrinsic financial services value.”

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Disclaimer: Opinions expressed in the Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Your transfers and transactions are at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Daily Hodl is involved in affiliate marketing.

Main Image: Shutterstock/Natalia Siiatovskaia/nur hafidiatama

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